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SPE DISTINGUISHED LECTURER SERIESis funded principallythrough a grant of the
SPE FOUNDATIONThe Society gratefully acknowledges
those companies that support the program
by allowing their professionalsto participate as Lecturers.
And special thanks to The American Institute of Mining, Metallurgical,
and Petroleum Engineers (AIME) for their contribution to the program.
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Unlocking the planets heavy oil and bitumenresources A look at SAGD
Unlocking the planets heavy oil and bitumenresources A look at SAGD
Subodh Gupta
EnCana CorporationMarch, 2005
Subodh Gupta
EnCana CorporationMarch, 2005
Author wishes to express thanks for Encanassupport and encouragement in allowing toparticipate in the Distinguished Lecturer
Program and in putting this presentationtogether
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A Power Hungry World!A Power Hungry World!
0
1
2
3
4
5
6
7
8
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
0
5
10
15
20
25
30
35
40
Population Energy Demand
History Projection
World PopulationWorld Population
BillionsBillions
Energy DemandEnergy Demand
TerraWattsTerraWatts
Source: UN Population Division, Energy Information Administration
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Conventional Oil SupplyConventional Oil Supply
Predictions based onHubberts theory suggest
declining conventional oilsupply
Much debate about exacttime of the peak
Source: Duncan and Youngqist, Campbell and Laherrerre
20
07
20
15
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Plenty of Fossil Fuel!Plenty of Fossil Fuel!
Source: H. H. Rogner, An Assessment of World HydrocarbonResources, Annual Review of Energy and Environment, 1997.
Total fossil fuel over 100 timesthe conventional oil
More unconventionaloil than conventional
0
10
20
30
40
50
60
OilUsed
C
onventionalOil
Unc
onventionalOil
ConventionalNG
UnconventionalNG
Coal
Me
thaneHydrates
TrillionBarrels
ofOilEquivalent
Additional Occurrences
Resources
Reserves
Used
0.812.163
17.17
3.08 6.14
45.78
137.5
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Heavy oil / bitumen in place
trillion bbls
CanadaCanada 1.61.6
Venezuela 1.2FSU 0.2 - 2.5
Enormous PotentialEnormous Potential
Source: AEUB, CAPP, EIA, AOSTRA, UNITAR
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Consequence of being unconventional
Light vs. Heavy
Consequence of being unconventional
Light vs. Heavy
More difficult toMore difficult torecoverrecover
Requires moreRequires more
downstreamdownstreamprocessingprocessing
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The Downstream ChallengeThe Downstream Challenge
Upgradingprocess
Differential5 10 $US/bbl
Gasoline
Distillates/Diesel
Resid
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How to produce this stuffThe Upstream Challenge
How to produce this stuffThe Upstream Challenge
Source: based on DOE report 2050(draft)
Not easy to recoverIn situ viscosity
Canadian Oilsands: > 1e6 cP
Venezuelan Heavy oil: ~3-10e3 cP
Technology and economicsconstantly improving
Oilsands context
US$/bbl
CanadianO
ilsands
VenezuelanH
eavy-oil
MiddleEast
Conventional
2
4
6
8
1012
Cost of Production
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Canadian Oil Sands: Recovery Technologies
Surface Mining
In Situ CSS
SAGD
Calgary
Edmonton
FortMc Murray
Cold Lakedeposit32 billion m3
Athabasca
deposit213 billion m3
Alberta
Peace Riverdeposit25 billion m3
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Surface Mining
Calgary
Edmonton
FortMc Murray
Cold Lake
Athabasca
Alberta Three-Step Process
Mine Oilsands
Separate Oil from Sand
Washing with Hot Water
Upgrade the Extracted Oil toSynthetic Crude
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Surface Mining
Major projects
Current
Suncors mining operations
Syncrudes mining operations
Athabasca Oil Sands Project
Upcoming
Kearl Mine, Horizon, Northern Lights and Fort Hills
Current Production Capacity ~650kbd
Announced projects to increase to >1million b/d in 10 years
Issues to consider
Economics is location (depth < 75m) dependent
Only 5 to 10% reserves suitable
Scale of economy requires huge capital
Calgary
Edmonton
FortMc Murray
Cold Lake
Athabasca
Alberta
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In Situ Processes
Cyclic Steam Stimulation
combustion
zone
steam
combustion
zone
combustion
zone Major projects/operators
Cold Lake - Imperial
Primrose CNRL Advantage
Lower surface disturbance
Less sensitive to shale barriers
Issues to consider Recovery ~25-30%
oil + water
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In Situ Processes
Steam Assisted Gravity Drainage (SAGD)In Situ Processes
Steam Assisted Gravity Drainage (SAGD)
Advantage Lower surface disturbance
Lower SOR : 2.5 to 3.5
Economic recoveries ~ 65% Modular capital requirements
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SAGDCurrent and upcoming projects tell the story
SAGDCurrent and upcoming projects tell the story
Current Major Projects
Foster Creek (Encana)
Christina Lake (Encana)
Mackay River (PetroCanada)
Firebag (Suncor)
Primrose/Wolflake (CNRL)
Hangingstone (JACOS)
Upcoming Projects
Joslyn Creek (Deer Creek)
Surmont (ConocoPhillips/TFE)
Long Lake (Nexen/OPTI)
Tucker Lake (Husky)
Sunrise (Husky)
Jackfish (Devon Energy)
Orion (BlackRock)
2004
100200
300
400
500
600
SAGD Production x1000 b/d
2007/2008
Source: based on DOB, Jan. 2005, ADOE
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SAGD
Current Issues?
SAGD
Current Issues?
Energy efficiency (GJ/bbl)
Heat is an expensive input
Water usage
Water recycle adds to the cost
Emissions
SAGD requires steam
steam = fuel and water
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SAGD
It costs to heatSAGD
It costs to heat
Reduction in
Cost of Heat
Use cheaper fuel
Bitumen/Residue to substitute Gas
Nexen/OPTI
Other talked-about alternatives
Heavyoil/Coke/Coal/Nuclear
Reduce heat requirement
Process Improvement
(Also reduces water requirement)
Low Pressure Operation
Use of Solvents SAP ( SAGD + solvent ) Su
b-surface
S
urface
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Low Pressure SAGD Operation
Issues
artificial lift
role of solution gas
Effect of Pressure on SOR and Rate
25m x 7D reservoir
0
1
2
3
100 1000 10000pressure kPa abs.
CSOR
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
ratem3/d/m
CSOR
rate m3/d/m
Source: Edmunds and Chhina, JCPT, Dec. 2001
Effect of Pressure on SOR and Rate
25mx7D reservoir
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Solvent Aided Process
Well
InjectionSteam +Solvent
What role can solvents play? ..SAP
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steam +solvent
condensedsolvent + oil
+ water
S
o
m
hgKSQ
.
......2 =
1Q
Enhanced Gravity Drainage in SAP
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Expected Production with Combining
Solvent with SAGD
0
100
200
300
400
500
600
700
0 200 400 600 800 1000 1200 1400
time
oil
rates
sagd oil rate
sap oil rate
Expected SAP Benefits (example)
SAGD SAP
SOR 2 1.4
Recovery 65% (as high as) 90%
Lower Capital Intensity
Lower Emissions Less Water Usage
Possible In Situ Upgrading
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Encanas Senlac SAP Pilot 2001-2002
Senlac Thermal Facility Phase C
To assess
Rate enhancement
Solvent retention
In situ upgradingAlberta Saskatchewan
Calgary
Edmonton
Lloydminster
Senlac
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Senlac SAP TestSenlac SAP Test
Senlac Pilot, 2001-2002 Butane used as solvent
Oil rate increase of over 50%
Test cut short due to reservoircontainment issue
SAP Pilot at Senlac - C1P Performance
0
100
200
300
400
500
600
Jun-01
Jul-01
Aug-01
Sep-01
Oct-01
Nov-01
Dec-01
Jan-02
Feb-02
Mar-02
Apr-02
May-02
Jun-02
date
oilratesm
3/d
SAGD SAP
expected production with SAGD
daily average production
daily production
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Senlac SAP TestSenlac SAP Test
Senlac Pilot, 2001-2002 Butane used as solvent
Oil rate increase of over 50%
Test cut short due to reservoircontainment issue
approx. upgrading: 10
API (over base level 12.70API)
In Situ Deasphalting
5
6
7
8
9
10
11
12
13
14
15
01-Feb-02
23-Mar-02
12-May-02
01-Jul-02
20-Aug-02
date
C5-insolubleasphaltenes(w/w%),APIgravity
C1 API
C1 asphaltenes
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Senlac SAP TestSenlac SAP Test
Senlac Pilot, 2001-2002 Butane used as solvent
Oil rate increase of over 50%
Test cut short due to reservoircontainment issue
approx. upgrading: 10
API (over base level 12.70API)
Over 70% solvent recovery
Solvent Injection and Recovery
0
5000
10000
15000
20000
25000
15-Nov-01
04-
Jan-02
23-
Feb-02
14-
Apr-02
03-
Jun-02
23
-Jul-02
11-Sep-02
31-
Oct-02
20-Dec-02
08-
Feb-03
30-
Mar-03
date
cumulativeinjec
tedsolvent,m3
0
10
20
30
40
50
60
70
80
solventre
covery%
cum c4 inj m3
cumulative C4 % recovery
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Encanas Christina Lake SAP TestEncanas Christina Lake SAP Test
Christina Lake SAP Pilot, 2004-2007
Prove (Athabasca context) rate acceleration
solvent retention
In situ upgrading
Pilot started July 2004
Calgary
Edmonton
Christina Lake
Fort McMurray
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Commercial Under development
SAGD and beyondSAGD and beyondIn situ Processes and Energy Efficiency
SAGD VAPEX,
Energy/bbl
SAP IC
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Solvent without steam - VAPEX
solventvapor
condensedsolvent + oil
Prospects
Minimal energyrequirement
No water recycle issue
Some downhole upgrading
Awaiting field scale demo
Several efforts to field test in oilsands:
Encanas Foster Creek VAPEX Pilot
Consortium DOVAP
SunCors ETS
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Commercial Under development
SAGD and beyondSAGD and beyondIn situ Processes and Energy Efficiency
SAGDVAPEX,
Energ
y/bbl
SAP IC
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SAGD
It costs to heatSAGD
It costs to heat
Reduction in
Cost of Heat
Use cheaper fuel
Bitumen/Residue to substitute Gas
Nexen/OPTI
Other talked-about alternatives
Coke/Coal/Nuclear
Reduce heat requirement
Process Improvement
(Also reduces water requirement)
Low Pressure Operation
Use of Solvents SAP ( SAGD + solvent ) Su
b-surface
Surface
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Cheaper Fuel
Sub-surface
Surfa
ce
Air SecondaryUpgrading
Fuel + H2
H2
Fuel
Product oil PrimaryUpgrading
ResidueGasification
Steam
Generation
Thermal Recovery
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Cheaper Fuel
Sub-surface
Surfa
ce
Air
Heat
Product oil PrimaryUpgrading
ResidueCombustion
Steam
Generation
Thermal Recovery
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Sub-surface
Surfa
ce
Air
Heat
Product oil
Primary
Upgrading
ResidueCombustion
SteamGeneration
Thermal Recovery
Everything in the Reservoir ?
Imagine that!
Everything in the Reservoir ?
Imagine that!
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The prized pursuit ..In Situ Combustion
Air/Oxygen/Water Oil/Gases
air/water zone
combustion zone
coke zonecondensation zone
mobile oil bank
In theory this is great!
minimal fuel requirement
high recoveries
no reservoir loss of priciersubstance
toe heel
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The prized pursuit ..In Situ Combustion
Air/Oxygen/Water Oil/Gases
air/water zone
combustion zone
coke zonecondensation zone
mobile oil bank
In theory this is great!
minimal fuel requirement
high recoveries
no reservoir loss of priciersubstance
Petrobanks Whitesands 3-wells Pilot
Location: South of Ft. McMurray
Time-frame: 2005-2008
Proponents expect a $6/bbl costreduction
Source: based on Petrobank website information, Fort McMurray Today
Air/Oxygen/Water Oil/Gases
toe heel
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To recap ..
World demand for energy in the near future will grow
Although the conventional oil supply is predicted todecrease, non-conventional economic oil sources areready to step up and fill the gap
SAGD is emerging to be the technology of choice for
the expanding exploitation of Oilsands of Alberta
Energy efficiency and economics of SAGD willsignificantly improve through steps such as SAP.
Dramatic improvement in recovery process areexpected if VAPEX or In Situ Combustion provesuccessful
We live in exciting times to witness and be a part of a
revolution in the Energy Technology!
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